Moving Average Calculator

Calculate the moving average for a time series.

Frequently Asked Questions (FAQs):

1. What is a moving average, and why is it important?
   • A moving average is a statistical technique used to smooth out fluctuations in data by calculating the average of a specified number of consecutive values. It's important in time series analysis for identifying trends and patterns within noisy or volatile data.
2. What is the formula for calculating a simple moving average?
   • The formula for calculating a simple moving average of n consecutive values in a dataset, denoted as x₁, x₂, ..., xₙ, is:
   
   • Where k is the current position and n is the number of values to average.
3. How do I interpret moving average results?
   • Moving averages help identify underlying trends by smoothing out short-term fluctuations. They reveal patterns that might be obscured by noise. Shorter moving averages respond quickly to recent changes, while longer ones offer a broader perspective.